William A. Rutter v. Commissioner of Internal Revenue

The sole issue before us is whether payments received by petitioner William A. Rutter while on sick leave from the New York City Police Department as the result of an injury received in the line of duty are excludable from gross income as amounts received under either a workmen’s compensation act, 26 U.S.C. § 104(a)(1), or a statute in the nature of a workmen’s compensation act, Treas.Reg. § 1.104-l(b) (1982). Finding that these payments meet neither qualification, we conclude that they are not excludable from Rutter’s gross income and affirm the order and decision of the tax court.

Although…